We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ormat Technologies (ORA) Down 5.8% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for Ormat Technologies (ORA - Free Report) . Shares have lost about 5.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ormat Technologies due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Ormat reported third-quarter 2024 adjusted earnings per share of 42 cents, which beat the Zacks Consensus Estimate of 30 cents by 40%. However, the bottom line declined 10.6% from 47 cents in the year-ago quarter.
The company reported GAAP earnings of 36 cents per share compared with 59 cents in the year-ago quarter.
The year-over-year deterioration can be attributed to the absence of tax income that the company registered in the third quarter of 2023 due to changes in Kenya tax laws back then.
ORA’s Total Revenues
ORA generated revenues of $211.8 million, which came almost in line with the Zacks Consensus Estimate. The top line rose 1.8% year over year, driven by higher revenues from its electricity segment.
ORA’s Segmental Performance
Electricity: Revenues in this segment amounted to $164.6 million, up 4.7% year over year. This upside was primarily driven by revenue contributions from ORA’s acquired Enel assetsand higher generation and pricing at Puna.
Product: This segment’s revenues declined 6.2% to reach $37.4 million from the year-ago quarter’s level. The decline was due to the timing of revenue recognition during the third quarter.
Energy: Revenues in this division amounted to $9.8 million, down 11.1% from the prior-year quarter’s figure. This was driven by the absence of higher energy rates realized in ERCOT during the previous year as the result of an inclement weather event.
ORA’s Operational Update
Ormat’s total operating expenses were $23.2 million, which increased 3.3% from the year-ago quarter’s level.
The operating income declined 5% year over year to $35.7 million.
The total cost of revenues was $152.9 million, up 3.3% year over year.
Net interest expenses were $34.8 million, up 39% year over year.
Ormat’s Financial Condition
ORA had cash and cash equivalents of $88.1 million as of Sept. 30, 2024, compared with $195.8 million as of Dec. 31, 2023.
ORA’s 2024 Guidance
The company updated its guidance for 2024. It now expects to generate revenues in the range of $875-$893 million, narrower than the prior guidance of $875-$910 million. The Zacks Consensus Estimate for revenues is pegged at $889.2 million, higher than the mid-point of the newly guided range.
Revenues for the Electricity segment are now anticipated to be in the band of $710-$715 million compared with the prior expectation of $710-$720 million. Product segment revenues are now expected to be in the range of $130-$138 million compared with the earlier projection of $130-$145 million. ORA now expects revenues from the Energy Storage segment between $35 million and $40 million compared with the earlier projection of $35-$45 million.
The annual adjusted EBITDA is projected to be in the band of $540-$555 million, up from the prior guidance of $520-$550 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -29.21% due to these changes.
VGM Scores
Currently, Ormat Technologies has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Ormat Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Ormat Technologies belongs to the Zacks Alternative Energy - Other industry. Another stock from the same industry, Cheniere Energy Partners, L.P. (CQP - Free Report) , has gained 17.4% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.
Cheniere Energy Partners, L.P. reported revenues of $2.06 billion in the last reported quarter, representing a year-over-year change of -3.4%. EPS of $0.84 for the same period compares with $0.60 a year ago.
For the current quarter, Cheniere Energy Partners, L.P. is expected to post earnings of $1.09 per share, indicating a change of +13.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.8% over the last 30 days.
Cheniere Energy Partners, L.P. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ormat Technologies (ORA) Down 5.8% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Ormat Technologies (ORA - Free Report) . Shares have lost about 5.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ormat Technologies due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Ormat Technologies Q3 Earnings Beat Estimates, Revenues Rise Y/Y
Ormat reported third-quarter 2024 adjusted earnings per share of 42 cents, which beat the Zacks Consensus Estimate of 30 cents by 40%. However, the bottom line declined 10.6% from 47 cents in the year-ago quarter.
The company reported GAAP earnings of 36 cents per share compared with 59 cents in the year-ago quarter.
The year-over-year deterioration can be attributed to the absence of tax income that the company registered in the third quarter of 2023 due to changes in Kenya tax laws back then.
ORA’s Total Revenues
ORA generated revenues of $211.8 million, which came almost in line with the Zacks Consensus Estimate. The top line rose 1.8% year over year, driven by higher revenues from its electricity segment.
ORA’s Segmental Performance
Electricity: Revenues in this segment amounted to $164.6 million, up 4.7% year over year. This upside was primarily driven by revenue contributions from ORA’s acquired Enel assetsand higher generation and pricing at Puna.
Product: This segment’s revenues declined 6.2% to reach $37.4 million from the year-ago quarter’s level. The decline was due to the timing of revenue recognition during the third quarter.
Energy: Revenues in this division amounted to $9.8 million, down 11.1% from the prior-year quarter’s figure. This was driven by the absence of higher energy rates realized in ERCOT during the previous year as the result of an inclement weather event.
ORA’s Operational Update
Ormat’s total operating expenses were $23.2 million, which increased 3.3% from the year-ago quarter’s level.
The operating income declined 5% year over year to $35.7 million.
The total cost of revenues was $152.9 million, up 3.3% year over year.
Net interest expenses were $34.8 million, up 39% year over year.
Ormat’s Financial Condition
ORA had cash and cash equivalents of $88.1 million as of Sept. 30, 2024, compared with $195.8 million as of Dec. 31, 2023.
ORA’s 2024 Guidance
The company updated its guidance for 2024. It now expects to generate revenues in the range of $875-$893 million, narrower than the prior guidance of $875-$910 million. The Zacks Consensus Estimate for revenues is pegged at $889.2 million, higher than the mid-point of the newly guided range.
Revenues for the Electricity segment are now anticipated to be in the band of $710-$715 million compared with the prior expectation of $710-$720 million. Product segment revenues are now expected to be in the range of $130-$138 million compared with the earlier projection of $130-$145 million. ORA now expects revenues from the Energy Storage segment between $35 million and $40 million compared with the earlier projection of $35-$45 million.
The annual adjusted EBITDA is projected to be in the band of $540-$555 million, up from the prior guidance of $520-$550 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -29.21% due to these changes.
VGM Scores
Currently, Ormat Technologies has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Ormat Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Ormat Technologies belongs to the Zacks Alternative Energy - Other industry. Another stock from the same industry, Cheniere Energy Partners, L.P. (CQP - Free Report) , has gained 17.4% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.
Cheniere Energy Partners, L.P. reported revenues of $2.06 billion in the last reported quarter, representing a year-over-year change of -3.4%. EPS of $0.84 for the same period compares with $0.60 a year ago.
For the current quarter, Cheniere Energy Partners, L.P. is expected to post earnings of $1.09 per share, indicating a change of +13.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.8% over the last 30 days.
Cheniere Energy Partners, L.P. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.